USA Truck Earnings Worsen Due to Restructuring, Weak Market
USA Truck Inc. reported a restructuring-related loss of $1.8 million, or 19 cents, as trucking and logistics performance was affected by the tough freight market.
Earnings excluding the charge of $5.3 million, or 34 cents per share, were 15 cents per share, a decline from last year’s adjusted earnings of 20 cents per share, said the statement from the company that ranks No. 50 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
CEO Randy Rogers said the quarter included several accomplishments, including assembling a new management team, achieving adjusted earnings of 15 cents per share “in a difficult freight market,” making capital investments and taking a series of steps “to lighten our cost structure and move toward a more variable cost model.”
Those moves included closing facilities, cutting staff jobs by 10% and shifting focus to the asset-light business. The steps should lead to improved results later this year, Rogers said.
Trucking revenue fell more than 20% to $75.7 million, resulting in a loss before interest and taxes of $4.4 million. Those results reversed a $1.5 million profit on that basis as the tractor fleet was shrunk by about 15% and rates per loaded mile fell 2%.
Results at the recently rebranded USAT Logistics unit showed a 6% drop in revenue to $34.9 million and operating income of $2 million, down more than 30% due to restructuring costs. The gross margin percentage improved to 18.7% from 17.4%.
